CALCUTTA, Nov 26: BOC India, the industrial and medical gases maker, on Thursday reported a net profit of Rs 6.10 crore for 1997-98, down 27 per cent from the previous year's Rs 8.40 crore. It would have reported a loss of Rs 2.70 crore but for the gains from the sale of its health care products division.Battling competitive pressures and a recession in its customer base, BOC said turnover for the year to September 30, 1998, had shown a marginal growth to Rs 236.50 crore from Rs 232.90 crore the previous year. Profit before interest, depreciation, tax and extraordinary items was Rs 20.70 crore against Rs 31.90 crore the previous year.However, it said, the recent steps taken by the government to boost the steel industry is likely to have a positive impact on the company's performance in the future.BOC is also expanding its medical gases business by installing pipeline supplies to leading hospitals and nursing homes. The company said it expects a rapid expansion and privatisation of the health caresegment following the government's decision to allow 40 per cent foreign investment in health insurance.To tackle the competition in its own business, BOC India is doing a comprehensive review of its processes and control systems, and re-engineering the organisation into a "leaner, fitter" business with a lower cost base. The company is also improving its information technology systems for faster response and enhanced customer service.Internationally, BOC Gases is downsizing and restructuring its businesses to refocus the organisation. This is also being done in India.During the year, BOC India commissioned a Rs 200-crore air separation unit at Jamshedpur in Bihar. The 1290 tonnes per day unit was capitalised and began commercial production on September 1, 1998.The company said the payback period for the unit will be long, and results in the short term will be impacted by the depreciation and interest burden. It said overall interest charges were brought down during 1997-98, but did not give thefigures.
